Loading...
HomeMy WebLinkAboutOrd 1826 - Special Excise Tax on Lodging 1LA ...wq 1908 Tukwiola C ity o f Washington Ordinance No. /8_1� J(0 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, LEVYING A SPECIAL EXCISE TAX OF ONE PERCENT ON THE SALE OR CHARGE MADE FOR THE FURNISHING OF LODGING BY ANY HOTEL, ROOMING HOUSE, TOURIST COURT, MOTEL OR TRAILER CAMP, AND THE GRANTING OF ANY SIMILAR LICENSE TO USE REAL PROPERTY; ESTABLISHING A SPECIAL REVENUE FUND (HOTEL/MOTEL TAX NO. 101) FOR THE TAX; PROVIDING PENALTIES FOR NONPAYMENT OF THE TAX OR VIOLATION OF THE REQUIREMENTS OF THE TAX; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, SSB 5867, enacted as Ch. 452, Laws of 1997, provides that cities are authorized to levy and collect a special excise tax not to exceed four percent on the sale of or charge made for the furnishing of lodging that is subject to tax under Chapter 82.08 RCW; and WHEREAS, SSB 5867, enacted as Ch. 452, Laws of 1997, provides that such tax shall be levied only to pay all or any part of the cost of tourism promotion, acquisition of tourism related facilities, or operation of a tourism related facility; and WHEREAS, Resolution No. 1381 establishing the Tukwila Lodging Tax Advisory Committee was passed by the Tukwila City Council on September 22, 1997; and WHEREAS, the Lodging Tax Advisory Committee, after a 45 -day review period, provided a recommendation to the City for implementation of an additional one percent lodging tax; and WHEREAS, the City Council desires to establish and levy such tax for the purposes provided by statute; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. There is hereby created a special excise tax of one percent on the sale of or charge made for the furnishing of lodging that is subject to tax under Chapter 82.08 RCW. The tax imposed under Chapter 82.08 RCW applies to the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, or trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property. It shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same. Section 2. The definitions of "selling price," "seller," "buyer," "consumer," and all other definitions as are now contained in RCW 82.08.010, and subsequent amendments thereto, are adopted as the definitions for the tax levied in this chapter. Section 3. There is created a special revenue fund (Hotel /Motel Tax No. 10 1) in the City and all taxes collected under this chapter shall be placed in this fund to be used solely for the purpose of paying all or any part of the cost of tourist promotion, acquisition of tourism related facilities, or operation of tourism related facilities or to pay for any other uses as authorized in Chapter 67.28 RCW, as now or hereafter amended. HOTELTAX..DOC 12126197 1 Section 4. For the purposes of the tax levied in this chapter: A. The Department of Revenue is designated as the agent of the City for the purposes of collection and administration of the tax. B. The administrative provisions contained in RCW 82.08.050 through 82.08.070 and in Chapter 82.32 RCW shall apply to administration and collection of the tax by the Department of Revenue. C. All rules and regulations adopted by the Department of Revenue for the administration of Chapter 82.08 RCW are adopted by reference. D. The Department of Revenue is authorized to prescribe and utilize such forms and reporting procedures as the Department may deem necessary and appropriate. Section 5. It is unlawful for any person, firm, or corporation to violate or fail to comply with any of the provisions of this chapter. Every person convicted of a violation of any provision of this chapter shall be punished by a fine in a sum not to exceed $500.00. Each day of violation shall be considered a separate offense. Section 6. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 7. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force and effect five (5) days after passage and publication as provided by law. PASSED BY THE CITY CO CIL OF TH CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this ,r day of 1998. W. Rants, Mayor ATTEST /AUTHENTICATED: e E. Cantu, City Clerk APPROVED AS TO FORM: By Office of the City Att FILED WITH THE CITY CLERK: f./ 3' 97 PASSED BY THE CITY COUNCIL: PUBLISHED: 1-9— 78 EFFECTIVE DATE: y- 9f ORDINANCE NO.: g 24, HOTELTAX.DOC 12/26/97 2 TO: Tukwila City Council FROM: Mayor John W. Rants DATE: December 29, 1997 SUBJECT: Implementation of 1% Hotel /Motel Tax and 1998 Budget Amendment Hotel /Motel Tax The Lodging Tax Advisory Committee has recommended implementation of a 1% tax on hotel /motel room charges. The time line for implementing this tax, if approved, is as follows: Recommendation by Lodging Tax Advisory Committee 12/19/97 Council approval of tax and budget amendment 01/05/98 Washington State Department of Revenue review of Tukwila ordinance, notification to hotels and motels, etc. 45 days, with actual beginning tax collection date of 03/01/98 First distribution by Department of Revenue to Tukwila for the period March 1 to March 31, 1998. 05/31/98 We estimate that there will be approximately $265,000 actually received during 1998. The 1999 collections are estimated to be approximately $460,000 based on the number of current hotel /motel establishments. If there is a need to procure parking facilities (requires Council approval) prior to May 1997, arrangements are available from Key Bank to provide funding. The $129,000 allocated for facilities is essentially for any debt service (interest) that would result from any debt advances /loans. We will be working with the Lodging Tax Advisory Committee and the Southwest King County Chamber to provide a marketing and tourism promotion plan. 1998 Budaet Amendment Implementation of the hotel /motel tax now allows the City to add a volunteer coordinator position to the City's budget in 1998. Funding proposed would be for nine months and would be funded by budget transfers -SWKC Chamber basic services ($18,000) and Music in the Park ($6,000) -which are to now be funded in the Hotel /Motel Tax Fund. AD:bjs City of Tukwila 6200 Southcenter Boulevard Tukwila, Washington 98188 John W Rants, Mayor MEMORANDUM Phone: (206) 433 -1800 City Hall Fax: (206) 433 -1833 December 19, 1997 Honorable Mayor John W. Rants City of Tukwila Councilmembers City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 SUBJECT: RECOMMENDATIONS ON IMPLEMENTATION OF SSB 5867 LODGING TAX Dear Mayor Rants and City Councilmembers: In accordance with the City of Tukwila Resolution No. 1381 establishing the Lodging Tax Advisory Committee "Committee the Committee submits the following report and recommendations regarding implementation of a new lodging tax as authorized by Washington State SSB 5867. The Committee charge was to review and comment on the imposition of a lodging tax authorized under SSB 5867, the amount of the tax to be implemented and to make recommendations on the City Council's proposal submitted to the Committee regarding program areas to expend the new lodging tax receipts. Underlying the Committee's review and formulation of the following recommendations was the mandate by SSB 5867 that the new lodging tax funds can only be used for tourism promotion, acquisition of tourism related facilities, or the operation of tourism related facilities. Attached is the Mission Statement adopted by the Committee to clarify its role and responsibility. Since the appointment of the seven member Committee on October 20, 1997, the Committee has met four times to formulate a mission statement, establish an administrative process and conduct a review of the City Council's proposal for tourism related program areas. In addition, the Committee also distributed a November 25, 1997 letter (see attached copy) to all hotel and motel properties (21) situated in the City of Ti Swat that explained the role of the Committee and proposed uses of the new lodging if cipts and requested their attendance at a December 2, 1997 meeting to solicit their input and comments regarding the new lodging tax. At the meeting, five of the hotel /motel representatives (including hotel Committee members) were present. LETTER TO MAYOR JOHN RANTS AND CITY COUNCILMEMBERS Page 2 RECOMMENDATIONS Based on the Committee's review and consideration of the City Council's proposal on tourism projects, the Committee by unanimous agreement submits the following recommendations for your consideration for implementation of the lodging tax authorized by SSB 5867: 1. It is recommended that the new lodging tax authorized by SSB 5867 be implemented on a timely basis in early 1998. 2. It is recommended that the amount of the lodging tax to be implemented be the full 1% authorized under SSB 5867. 3. It is recommended that the following tourism program areas and funding levels be established for implementation in 1998: Cultural and Performing Arts $25,000. It is further recommended that a grant application process be developed with assistance from the Committee in 1998 to provide for equitable review and consideration of future cultural and performing arts applications (beginning in 1999) that will maximize the benefits of tourism. The grant applications should be evaluated based on how effectively they promote tourism with future awards to the same agency based on the effectiveness of their past tourism grant(s). This process will require cultural and performing arts agencies to be sensitive to the use of lodging tax funds in the effective promotion of tourism. The Committee feels that a culturally rich environment will be a positive factor in enhancing tourism activity. Marketing and Public Relations $85, 000. It is further recommended that the Southwest King County Chamber of Commerce act as the lead agency in the development of a tourism marketing component. The Chamber shall submit a written marketing plan in early 1998 to the Committee for review and comment. After review by the Committee, a final marketing plan, in addition to the Chamber's separate basic services contract, shall be submitted to the City for approval and implemented through a contract agreement between the City and Chamber. Tourism Facilities $129,000. Contingency Balance $26, 000. Note: Total 1998 projected funds are $265,000 which is based on 7 months (5 months to implement new tax collection process) of projected cash collections. LETTER TO MAYOR JOHN RANTS AND CITY COUNCILMEMBERS Page 3 It is projected for a full year of collections the total will equal approximately $460,000 based on the current and new hotel accommodations projected for 1998. It is the consensus of the Committee that the implementation of the above recommendations will best serve the tourism industry and meets the requirements of the City Council mandates established for the Committee. The Committee feels that the above recommended actions will increase the economic activity resulting from the additional tourists visiting the City of Tukwila and will enhance the City as a place of destination. Once the new tax is implemented in 1998 and programs are initially funded, the Committee stands ready to continue its ongoing review process of changing needs and new programs that maximize the tourism dollars for the City. Respectfully submitted, m Hag •n, Chair David Wilde, Doubletr-e Suites Inn Bill HayeAuseum of Flight 4K,(M YwinfeA Sandy Blon. in Embassy cites Hotel Dwi Lean, Econolodge /1 Jay Geen, orthwest Expo Center Kirsti ea er, SW C)iamber of Commerce Tukwila Lodging Tax Advisory Committee Mission Statement The creation of the Tukwila Lodging Tax Advisory Committee by the City of Tukwila is for the purpose of the Committee to serve the functions prescribed in SSB 5867 (the Act) passed by the State Legislature which allows for imposition of a local option, excise tax on lodging. The funds generated from such a tax are to be used solely for tourism promotion, acquisition of tourism related facilities, or the operation of tourism related facilities. The Committee will continue to function and perform its duty as long as there is a tax imposed by the City of Tukwila. Tourist, as defined by the Act, is a person who travels from a place of residence to a different town, city, county, state, or country for the purpose of business, pleasure, recreation, education, arts, heritage or culture. Tourism is defined as the economic activity resulting from tourists. The Tukwila Lodging Tax Advisory Committee will review and comment on the imposition of any tax under SSB 5867 or changes thereof and any proposed use of funds generated through the imposition of a tax allowed by the Act. Comments the advisory committee submits shall include an analysis of the extent to which a proposal shall accommodate activities for tourists or increase tourism, and the extent to which the proposal will affect the long -term stability of the fund. Such comments will be submitted to the City Council for review within forty -five days from receipt of any proposal submitted to the Committee. 11/18/97 November 25, 1997 Tukwila Silver Cloud Motel 13050 48th Ave S Tukwila WA 98168 -3304 Dear Owner /Manager: Sincerely, RE: Proposed Lodging Tax Option by City of Tukwila The Tukwila City Council passed Resolution #1381 on September 22,1997. This resolution created a seven member Lodging Tax Advisory Committee (see attached membership list). The committee has been charged with reviewing and commenting on a proposed 1% increase in the hotel /motel tax effective in 1998. The proposal includes requested uses of these tax proceeds by the City. A summary is shown below for 1998. Revenues Estimated $386,000 Proposed Uses: Culture and performing arts $60,000 Marketing efforts (City wide) 100,000 Transportation activities 150,000 Contingencies 76,000 Total Proposed Uses $386,000 We have scheduled a committee meeting at the Doubletree Suites in Tukwila to provide a forum for you and your counterparts to be brought up to date on the process and receive feedback from those who will be affected. If you need further information, you can call any of the members listed. Jim Haggerton Lodging Tax Advisory Committee, Chair Tukwila City Council, President Meeting Date: Tuesday, December 2, 1997 Time: 2:00 to 3:30 pm Location: Doubletree Suites, Tukwila Attachment Name Ben Carol Motel Best Western Southcenter Courtyard by Marriott Doubletree Inn Doubletree Suites Econo Lodge Embassy Suites Hotel Extended Stay America Great Bear Motor Inn Hampton Inn Southcenter Holiday Inn Homewood Suites Hotel Jet Inn Motel Moonrise Motel Residence Inn Sea -Tac North Travelodge South City Motel Spruce Motel Towne Country Suites Traveler's Choice Motel Tukwila Silver Cloud Motel 21 Hotels /Motels in the City of Tukwila 2,229 Units total Number of Condo Units 742 Number of Apartment Units 3,502 HOTELS/MOTELS IN TUKWILA Address 14110 Pacific Hwy S 15901 W Valley Hwy 400 Andover Park W 205 Strander Blvd 16500 Southcenter Pky 13910 Pacific Hwy S 15920 W Valley Hwy 15451 53rd Ave S 14420 Pacific Hwy S 7200 S 156th St 11244 Pacific Hwy S 6955 Fort Dent Way 3747 S 142nd St 14440 Pacific Hwy S 16201 W Valley Hwy 14845 Pacific Hwy S 14242 Pacific Hwy S 14442 Pacific Hwy S 14800 Interurban Ave 3747 S 146th St 13050 48th Ave S I Phone I Units s 244 -6464 I 70 226 -1812 I 144 575 -2500 149 246 -8220 197 575 -8220 221 244 -0810 49 227 -8844 238 244 -2537 96 246 -9920 35 228 -5800 154 762 -0300 181 433 -8000 106 431 -0085 32 241 -0066 24 226 -5500 144 242 -1777 72 243 -0222 38 244 -9930 40 246 -2323 85 246 -3100 34 241 -2200 120 CITY OF TUKWILA SUMMARY OF ORDINANCE NO. /gcRf AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, LEVYING A SPECIAL EXCISE TAX OF ONE PERCENT ON THE SALE OR CHARGE MADE FOR THE FURNISHING OF LODGING BY ANY HOTEL, ROOMING HOUSE, TOURIST COURT, MOTEL OR TRAILER CAMP, AND THE GRANTING OF ANY SIMILAR LICENSE TO USE REAL PROPERTY; ESTABLISHING A SPECIAL REVENUE FUND (HOTEL/MOTEL TAX NO. 101) FOR THE TAX; PROVIDING PENALTIES FOR NONPAYMENT OF THE TAX OR VIOLATION OF THE REQUIREMENTS OF THE TAX; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. On l /5" the City Council of the City of Tukwila passed Ordinance No. f levying a special excise tax of one percent on the sale of or charge made for the furnishing of lodging that is subject to tax under Chapter 82.08 RCW as recommended by the Lodging Tax Advisory Committee; establishing a special revenue fund for the tax; providing penalties for nonpayment of the tax or violation of the requirements of the tax, providing for severability and establishing an effective date. The full text of this ordinance will be mailed without charge to anyone who submits a written request to the City Clerk of the City of Tukwila for a copy of the text. APPROVED by the City Council at its meeting of f Published Seattle Times: x/7/9'7 Cof./At Cantu, City Clerk